If you’re not sure then keep reading. The first thing you need to do is a headcount on 1st April to work out whether you are a substantial employer or not. But the 1st of April is Easter Sunday I hear you say. That’s okay the headcount can be done like the census, therefore you can do the headcount on Tuesday 3rd based on how many employees you had on Sunday.
What is a substantial employer?
For all substantial employers, it will be mandatory that you will be STP compliant by 1 July.
What is STP?
At the end of each pay, employers must report ALL payment information to the ATO. Employers will no longer be required to provide EOFY payment summaries to employees or a payment summary annual report to the ATO.
Why is it being introduced?
- To align payroll with regular reporting
- Enable the identification of non-compliance more quickly
- Enable better collection of unpaid entitlements
- Penalise employers who repeatedly offend
What will need to be reported through STP?
Employers will report YTD payments such as their employees Salaries or wages, PAYG withholding and superannuation payments
How often do employers need to report?
An employer will need to send the information at the end of each completed pay. This is called a ‘pay event’
What happens if I need to make a correction after I send my STP file to the ATO?
The STP process deals in sending YTD values to the ATO. Therefore if a correction needs to be undertaking the next pay will always have the latest YTD amounts. Additionally, many payroll systems are proving for a process (an ‘update event’) that allows for report changes to employee year-to-date amounts previously reported.
How do you prepare for STP?
Appoint an STP Champion (usually the payroll manager)
What will the STP Champion be in charge of?
The role of the STP Champion is to:
Ensure there is communication to your employees. What they need to know:
- They will no longer receive payment summaries at the end of the financial year.
- They will be easily able to see their year to date information online through myGov, Click here for more information
- Check if their super has been paid through myGov
- Have more information pre-filled into myTax.
Ensure you have access to AUSkey
- If you don’t already have access to AUSkey you will need to register. Click here for more information
- Access to the ATO Access Manager
Clean up your data. NOTE: This should be done now not at the end of June particularly if you have a lot of employees.
The following fields must be filled in for your data to be verified.
- Last Name
- Birth Date
NOTE: for clients adopting STP prior to 1 July 2018, there will be no need to undertake EOFY reporting.
Here’s the good news…. If you’re using a MYOB product – you’re in good hands.
Contact us to get compliant now. Don’t leave it too late.